This bill did not become law and is no longer proceeding.
Budget, tax & economy
Large new apartment projects built to stay as rentals, rather than be sold off unit by unit, would get tax breaks to encourage more rental housing in Australia.
Build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. apartment projects were not attractive enough to investors, leaving fewer new long-term rental homes. The bill gives eligible projects tax breaks to encourage more rental construction, with rules on project size, longer leases, single ownership and affordable housingHomes rented below market rates for eligible tenants, used here as a condition for keeping the tax breaks..
Australia already had a rental market under strain, and by March 2024 fewer than 40 per cent of advertised rentals were affordable for a typical-income household, while the government had already flagged build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax incentives in the 2023 budget to try to attract more large long-term rental projects. This bill turned that budget promise into legislation by offering faster depreciationA tax deduction that lets an owner write off the building's value over time, which this bill would allow faster for eligible projects. and a lower withholding taxTax taken out before a payment is sent to an investor, which is the tax rate this bill would cut for some payments. rate for eligible projects with minimum scale, longer leases, single ownership and affordable housingHomes rented below market rates for eligible tenants, used here as a condition for keeping the tax breaks. rules, but it later stalled in the SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. and was discharged from the Notice PaperThe Senate's list of business waiting to be dealt with; if a bill is discharged from it, it is effectively taken off the agenda..
The main criticism was that the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax breaks would hand benefits to developers and foreign-backed investors without easing the rental crisis quickly or making enough homes genuinely affordable. That case was pressed most strongly by the Coalition and the Greens, while some crossbenchMPs who are not in the government or the main opposition, and who may support or oppose a bill case by case. support remained cautious and conditional on the policy being reviewed if it failed to deliver.
The government introduced this bill. Speeches supporting it came from Labor, some crossbenchMPs who are not in the government or the main opposition, and who may support or oppose a bill case by case. members.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
176 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
Large new apartment projects built to stay as rentals, rather than be sold off unit by unit, would get tax breaks to encourage more rental housing in Australia.
Eligible build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. projects would cut the withholding taxTax taken out before a payment is sent to an investor, which is the tax rate this bill would cut for some payments. rate on some managed investment trustA pooled investment structure used to hold assets like rental property, which can get different tax treatment on payments to investors. payments from 30 per cent to 15 per cent, making overseas-backed rental projects more attractive.
Eligible build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. projects would be able to claim building depreciationA tax deduction that lets an owner write off the building's value over time, which this bill would allow faster for eligible projects. faster, lifting the annual rate from 2.5 per cent to 4 per cent and shortening the write-off period to 25 years.
To get these tax breaks, a project would need at least 50 homes and would have to offer renters a lease of at least three years for each home.
To keep the tax breaks, a build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. project would need one owner for at least 15 years and at least 10 per cent of its homes rented at affordable rates.
Build-to-rent developments are specifically designed to be rented out rather than sold to individual buyers.Second reading speech
For eligible new build-to-rent developments, the final withholding tax rate on eligible fund payments from managed investment trust (MIT) investments will be reduced from 30 per cent to 15 per cent.Second reading speech
The depreciation rate for capital works in eligible build-to-rent developments will also be increased from 2.5 per cent to four per cent per annum. This will cut the depreciation period from 40 years to 25 years for eligible developments.Second reading speech
Build-to-rent developments will need to meet criteria to be eligible for the concessions. Key requirements include a minimum of 50 or more apartments or dwellings and minimum lease terms of three years must be offered for each dwelling.Second reading speech
Build-to-rent developments must be held under single ownership for a minimum of 15 years. At least 10 per cent of dwellings must be tenanted on an affordable basis, delivering more long-term affordable rental supply.Second reading speech
Context
Australia already had a rental market under strain, and by March 2024 fewer than 40 per cent of advertised rentals were affordable for a typical-income household, while the government had already flagged build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax incentives in the 2023 budget to try to attract more large long-term rental projects. This bill turned that budget promise into legislation by offering faster depreciationA tax deduction that lets an owner write off the building's value over time, which this bill would allow faster for eligible projects. and a lower withholding taxTax taken out before a payment is sent to an investor, which is the tax rate this bill would cut for some payments. rate for eligible projects with minimum scale, longer leases, single ownership and affordable housingHomes rented below market rates for eligible tenants, used here as a condition for keeping the tax breaks. rules, but it later stalled in the SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. and was discharged from the Notice PaperThe Senate's list of business waiting to be dealt with; if a bill is discharged from it, it is effectively taken off the agenda..
Government announces build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax incentives in the 2023 budget
During the 2024 HouseThe House of Representatives, where the bill was debated and passed before going to the Senate. debate, speakers said Labor had first announced the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax incentives in the 2023 budget as a way to lift rental housing supply.
Hansard ↗PropTrackA property data service cited on the page for its estimate of how many advertised rentals were affordable in March 2024. finds fewer than 40 per cent of advertised rentals are affordable
A HouseThe House of Representatives, where the bill was debated and passed before going to the Senate. speech recorded that PropTrackA property data service cited on the page for its estimate of how many advertised rentals were affordable in March 2024. found in March 2024 that less than 40 per cent of advertised rentals were affordable for a typical-income household, underscoring the pressure the policy was meant to address.
Hansard ↗Bill is introduced to legislate build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax breaks
The bill was introduced to make eligible build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. projects more attractive to investors through tax concessions tied to rental, ownership and affordable housingHomes rented below market rates for eligible tenants, used here as a condition for keeping the tax breaks. conditions.
Parliamentary timeline ↗HouseThe House of Representatives, where the bill was debated and passed before going to the Senate. passes the bill
The HouseThe House of Representatives, where the bill was debated and passed before going to the Senate. agreed to the third readingThe final vote in the House on whether to pass the bill in its current form., sending the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. measures on for SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. consideration after debate over whether the incentives would materially improve rental supply.
Parliamentary timeline ↗SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. discharges the bill from the Notice PaperThe Senate's list of business waiting to be dealt with; if a bill is discharged from it, it is effectively taken off the agenda.
The SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. later discharged the bill from the Notice PaperThe Senate's list of business waiting to be dealt with; if a bill is discharged from it, it is effectively taken off the agenda., leaving the proposed build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax settings unpassed in this form.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered the bill in detail and dealt with amendments before the next stage.
Consideration in detail debate
The chamber agreed to the bill at third readingThe final vote in the House on whether to pass the bill in its current form., which completed passage through that chamber.
Third readingThe final vote in the House on whether to pass the bill in its current form. agreed to
The SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. received and read the split-out bill a first time after it had already begun in the HouseThe House of Representatives, where the bill was debated and passed before going to the Senate. of Representatives.
Introduced and read a first time : Bill divided by the SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper.
Referred to Committee (02/07/2024): SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. Economics Legislation Committee; Committee report (04/09/2024)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
Key criticism
The main criticism was that the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. tax breaks would hand benefits to developers and foreign-backed investors without easing the rental crisis quickly or making enough homes genuinely affordable. That case was pressed most strongly by the Coalition and the Greens, while some crossbenchMPs who are not in the government or the main opposition, and who may support or oppose a bill case by case. support remained cautious and conditional on the policy being reviewed if it failed to deliver.
Some criticism focused on effectiveness and design rather than opposing more rental housing in principle.
May not relieve the rental crisis soon enough
Critics argued the measure was too delayed and too weak to help renters facing immediate pressure, saying tax incentives for large projects would not bring enough homes online fast enough to materially ease current shortages.
Tax breaks could mainly reward investors and developers
Opponents said the bill risked giving generous tax concessions to corporate property developers and overseas-backed investors while producing rentals that were still out of reach for many people, rather than directing support to cheaper housing options.
Tax settings alone may not be enough
A narrower reservation was that the policy relied too heavily on tax incentives and should be monitored closely, because changing tax settings by itself may not fix housing supply problems if projects do not actually materialise at scale.
Further sources
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Jones supports the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. measures because they are intended to increase rental supply at scale and encourage more new homes, including affordable housingHomes rented below market rates for eligible tenants, used here as a condition for keeping the tax breaks..
Read in Hansard ↗Howarth says the coalition will oppose the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. part of the bill and move to remove it because he says it is delayed, ineffective and will not ease the current rental shortage.
Read in Hansard ↗Spender supports the bill because she wants more housing supply and says she is not prepared to vote against a measure aimed at encouraging build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. development.
Read in Hansard ↗Chandler-Mather opposes the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. part of the bill and wants it replaced, arguing it would give property developers more tax handouts for mostly unaffordable rentals while doing little to ease the housing crisis.
Read in Hansard ↗All speeches by bloc
1 speaker · 2 contributions · 1 support
Hansard records 2 separate contributions by Stephen Jones, including an amendment-moving contribution. They are grouped here so the speaker is listed once.
Moved amendment
Jones supports the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. measures because they are intended to increase rental supply at scale and encourage more new homes, including affordable housingHomes rented below market rates for eligible tenants, used here as a condition for keeping the tax breaks.. He says the tax incentives are needed to use every lever available to address the housing shortage.
“Schedule 1 to the bill contains two tax incentives which help increase our housing supply to deliver more homes for renters by encouraging investment in the build-to-rent sector.”Read this contribution in Hansard ↗
Second reading speech
Stephen Jones supports the build-to-rentA type of apartment project designed to stay in long-term rental ownership instead of being sold off unit by unit. measures and says they are part of the solution to housing pressure by helping prove up the asset class and increase rental supply in cities. He rejects the opposition's amendments and says the government commends the bill to the HouseThe House of Representatives, where the bill was debated and passed before going to the Senate..
“The simple fact is that we need a lot of measures to deal with the housing issues. I don't pretend for one moment that the build-to-rent measures that we've included within this bill are the solution overall to all of the housing pressures. But proving up an asset class and ensuring that there is more rental accommodation in our cities, which are short on all forms of accommodation, including rental accommodation, is a part of the solution, and that's why we put it forward in this bill.”Read this contribution in Hansard ↗
1 speaker · 1 oppose
“The coalition will oppose schedule 1 and move amendments to remove it from this bill.”Read the full speech in Hansard ↗
1 speaker · 1 oppose
“Once again Labor is not only tinkering around the edges of this housing crisis; it is bowling up plans that will make this housing crisis worse. How is it that, in the middle of the worst housing crisis that we have seen in generations—millions of renters and mortgage holders falling into severe financial stress, millions of first home buyers unable to buy their first home—Labor's proposal is to give more tax handouts to property developers and investment funds to build rental apartments that almost no-one will be able to afford?”Read the full speech in Hansard ↗
1 speaker · 1 support
“While I acknowledge the concerns of the Property Council and others, I am hesitant to vote against a bill that seeks to add to housing supply, as I'm hesitant to move amendments to adjust the investment attractiveness of BTR by removing provisions for affordable housing.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Consideration in detail debate
Consideration in detail
The chamber considered the bill in detail and dealt with amendments before the next stage.
House · Third reading agreed to
Third readingThe final vote in the House on whether to pass the bill in its current form. agreed
The chamber agreed to the bill at third readingThe final vote in the House on whether to pass the bill in its current form., which completed passage through that chamber.
Senate · Introduced and read a first time : Bill divided by the Senate
Introduced
The SenateThe upper house of Parliament, where the bill later stalled and was taken off the Notice Paper. received and read the split-out bill a first time after it had already begun in the HouseThe House of Representatives, where the bill was debated and passed before going to the Senate. of Representatives.
Senate · Discharged from Notice Paper
Discharged from Notice PaperThe Senate's list of business waiting to be dealt with; if a bill is discharged from it, it is effectively taken off the agenda.
The bill reached this recorded parliamentary step.
Senate Economics Legislation Committee; Committee report (04/09/2024)
Referred to committee
Referred to Committee (2 July 2024): Senate Economics Legislation Committee; Committee report (4 Sept 2024)
APH bill page notes
